internship report on mepco
DESCRIPTION
REPORT on MEPCO MULTAN,PAKISTANcomplete report .Finance department.TRANSCRIPT
Internship Report On
MEPCO (WAPDA)
Office of the Manager Operation MEPCO Multan circle
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Internship report submitted to the department of Management science, Education University Multan to full fill the requirements of BBA
(Hons) Degree
By
M.Shehroz khan
Roll# 1167
BBA(HONS)
Session 2009-2013
Coordinator
Prof: Sohail chuhan
Department of Management sciences Education University Multan Campus
Dated: 2-07-2013
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“Genius makes its observations in short hand; talent writes them out at length.”Christian Nevell Bovee
As mentioned by the above quotations observing and on site viewing are every firm base for
learning. We learn a lot more by seeing the theories, we read in books, applied practically by
the pros and by seeing how they actually put them to work. If we mull over the significance of
internship program then we will be able to bare the facts that internship enhance ones practical
loom towards work and provide maximum chances for learning, which will obviously help out
candidate in the practical fields. The intention at the rear about internship program is that the
students can analyze, observe, feel, examine the organization environment and equip
themselves with the tools to face the ever shifting challenges in the organizations. In short
internship plays a pivotal role in the future sensation& stir of the candidate.
This Report is specially meant for the student of BBA (Hons). It is concerned to a brief study of
the operation, Function, tasks and services of MEPCO.
The effective system at MEPCO was a piece of art and to see it in working process was a treat
itself. The billing system at MEPCO is designed to calculate and disseminate bills and to store
these bills in the data base and to use them for further use. MEPCO has fine organizational
structure and a well define fully working effective system that helps and aids managers to do
their job at best. Our knowledge was further enlighten when we had some of the lectures from
the seniors managers of MEPCO, they knew quite a lot about the organization and the subject
and they left no stone unturned to let us know about that it was a four week study of the billing
system and we had the most enjoyable case study of our life.
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Preface
In preparation of this Report is have tried my best to provide all Possible information about the
operation, function and tasks of MEPCO in brief and comprehensive form. It also includes a
brief department worked during internship. I have also tried my best to use simple and easy
words and language.
This report is an anthology of my views pertaining to MEPCO operations & practices. In my view
it is a credible and comprehensive compilation of facts. In this report I wrote principally on the
issues pertaining to job duties & responsibilities, operations & practices and its future prospects
with some recommendations.
When the time came to give this information a convenient shape I was confronted with a
dilemma of what to put in. One leeway was to include all details with explanation & second
preference was to point out some worthy issues with some details. Last solution looked more
practicable to me therefore I opt for second solution i.e. to present some relevant feasible
details. These details entail information about management philosophy, practices, and
functions, strong and weak areas of MEPCO . I take this opportunity to express my gratitude to
all who helped me in the preparation of this valuable report.
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All praise to Almighty Allah, the most merciful and compassionate, who give me skills and
abilities to complete this report successfully
I am grateful to my parents who are always been a source of encouragement for me throughout
my life and from start to the end of this report
I am thankful to all my staff members so MEPCO Multan division.
I found every one very co-operative and helpful for providing me the Theoretical as well as
practical knowledge about the function and operation of the MEPCO.
I like to express our gratitude to Faqir Ahmed (Head of Technical Dept.MEPCO), Ahsan Kareem
(Manager Revenue Branch) and the whole MEPCO Team that helped me by providing all the
needed information i needed to complete this report. I express my greatest gratitude to my
kindhearted Supervisor
Mr. Sohail Chuhan
Who was the Person who made me able to write this report, His enthusiasm shows the way
forward to me to achieve this success and who kept me in high spirit through his appreciation.
He helped me a lot each time I went up to him.
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Acknowledgment
I dedicate my work to my most respectable parents and teachers whom prayer made me able
to have such an opportunity of working in the Government Sectors and get experienced.
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Dedication
Executive summary
“Experience is not what happens to you, it is what you do with what happens to you.”-
Aldous Huxley
I judge my time spent at MEPCO(Finance Department) as being the most productive and
exhilarating experience of my corporate life. Few of the main highlights of my work experience
while at Finance Department were:
•Good Leadership
•Congenial Work Atmosphere
•Challenging Tasks Assignment
•Employee Empowerment
•Proactive Problem Resolution
Before the details description of the report I started with the summary of work I done. The
basic purpose of this summary is to given an idea about the contents and efforts made behind
the completion of the report to the reader.
It was assigned me to visit the MEPCO to view the working environment, function, procedures
and behavior of doing work. Internship was started from 29-07-2013 and end on 06-09-2013,
this period was the real experience e of my life and I saw the setup, working process and formal
documentation of the MEPCO.
The MEPCO is a very big organization with several departments in working in the head office.
The human resource department which deals with the internees has assigned me MEPCO
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Executive summary
Khanewal road for 6 weeks. MEPCO gives me the opportunity to view, how the books of
accounts are prepared, how to fill the different forms, how to behave wit customers and about
the record keeping. I worked in Finance section of MEPCO and learned about distribution
system of MEPCO, technical correspondence between departments and flow of data between
departments. I also learned billing system of MEPCO and also how to apply for new connection
and what is procedure. Here staff gives me opportunity to do practical work. It was a really nice
and fruitful experience for my upcoming practical life.
I would like to conclude by saying that even though every person will have a different story to
tell, the common factor that binds us all is the good work done by our predecessors in the
Education University. I have given more than 100% of my efforts to keep up that good work and
I am sure that my colleagues have done the same. I am hopeful that as we pass through the
corridors of this great institution into the real world, this legacy will be kept and upheld by the
future generation of Education University.
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History
Water is the most significant source in the country like Pakistan in which an overwhelming
majority of the population is dependent on agriculture as a source of living. Besides agriculture
produces constitutes the basis of country’s economy and foreign exchange earnings, making
water all the more important.
In September 18, 1958 WAPDA was created to undertake the task of investigating, planning and
executing schemes for irrigation drainage, prevention of water logging and reclamation of
saline land as an autonomous body responsible for integrated development of water and power
resources in Pakistan. The organization was also entrusted with the work of implementing Indus
Basin Settlement plan signed between India and Pakistan in 1960 to develop replacement
works for management of river water and irrigation system. The life savings action for
Pakistan’s agriculture has been WAPDA’s role in the field of water logging and salinity.
The multipurpose dams to Mangla and Tarbela have supplied much needed water supply for
winter crops and produced valuable hydel electricity as bi-product to give a broad base to
WAPDA’s vast and country wide national grid.
At the time of independence in 1947, Pakistan inherited 60 megawatts of power generation
capability with the average annual production of 142 million units of electricity for a population
of 31.5M, yielding 4.5 units per capita consumption. After 12 years, when WAPDA was created
in 1958 the generation capacity had crawled to 119 MW.
In first five years of its operations by 1958-1963, the electricity capability went up to 636 MW
from 119 in 1959, and power generation to about 2500 MKWH from 781. Density of
consumption system rose from 278 thousand customers in 1959 to 688 thousand in 1965.
WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a Semi-
Autonomous Body for the purpose of coordinating and giving a unified direction to the
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development of schemes in Water and Power Sectors, which were previously being dealt with,
by the respective Electricity and Irrigation Department of the Provinces.
Charter of Duties:
The Charter of Duties of WAPDA is to investigate, plan and execute schemes for the following
fields:
Generation, Transmission and Distribution of Power.
Irrigation, Water Supply and Drainage.
Prevention of Water logging and Reclamation of Water logged and Saline Lands.
Flood Management.
Corporatization policy
Objectives:In 1992, the Strategic Plan for restructuring the Pakistan Power Sector (PPS) was approved by
the GOP/CCI. As a part of the restructuring process, WAPDA's functions under Water Wing and
Power Wing were to be segregated in the following manner:
Unified Power wing of WAPDA comprising of Generation, Transmission and Distribution
to be restructured into twelve (12) public limited companies under the corporate law.
Now TESCO is made in Tribal areas
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Restructure power sector assets to form autonomous commercial entities through the
adoption of prudent business practices, enhanced efficiency levels, cost reduction and
profit orientation
Promote competition to eventually offer affordable electricity to customers.
Through commercialization process, promote commercial viability and enhance business
value of the assets block of each corporate entity.
Enhance privatization initiatives
Accomplishments:
Major accomplishments to-date are as follows:
Operationalized Pakistan Electric Power Company (PEPCO) as a Private limited management
company owned by Government of Pakistan (GOP) to steer, manage and oversee the
corporatization/commercialization reforms program.
Formed twelve (12) Corporate Entities as following:
FOUR Thermal Power Generation Companies (GENCOs).
Southern Generation Power Company Limited (GENCO-1) head
quarter at Jamshoro district Dadu near Hyderabad Sindh.
Central Power Generation Company Limited (GENCO-2) head
quarter at Guddu district Jacobabad Sindh.
Northern Power Generation Company Limited (GENCO-3) head
quarter at WAPDA House Lahore.
Kout Addu Power station (KAPCO) head quarter at Kout Addu Punjab.
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Eight (8) Distribution Companies (DISCOs). Now TESCO is added to these,
1. LESCO Lahore Electric Supply Company.
2. GEPCO Gujranwala Electric Power Company.
3. FESCO Faisalabad Electric Supply Company.
4. MEPCO Multan Electric Power Company.
5. PESCO Peshawar Electric Power Company.
6. HESCO Hyderabad Electric Supply Company.
7. QESCO Quetta Electric Supply Company.
8. IESCO Islamabad Electric Supply Company.
9. TESCO Tribal areas Electric Supply Company
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One (1) National Transmission & Power Dispatch Company (NTDC)
Constituted Board of Directors of the corporate entities with the induction of Directors
from the private sector and PEPCO to utilize their experience for formulation of effective
corporate policies.
Executed Legal agreements such as Business Transfer Agreements (BTA), Operation and
Development Agreement (ODA), Electricity Supply Agreements (ESA), Bulk Supply
Agreements (BSA) and Fuel Supply Agreements (FSA) between WAPDA and corporate
entities for autonomous commercial operation.
Transfer of WAPDA staff to the respective corporate entities (Manpower Transition
Program Phase-I completed). Phase II was also scheduled for completion by June, 2000.
Obtained Federal Tax Exemptions for the corporate entities for Capital Value Tax,
Income tax and Wealth Tax.
Obtained consent of most of the creditors
Investment Plans for Distribution Power System Rehabilitation prepared and finalized by
the Distribution companies
Financial Restructuring of WAPDA approved by GOP
Filed applications by all Power Distribution Companies (DISCOs) for obtaining License
from National Electric Power Regulatory Authority (NEPRA).
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Customer Services:
WAPDA provides a chain of services to its on-line consumers. You can use the links provided
at the top to conveniently receive any type of Customer Services while sitting at your home.
The sources of these services are reliable and follow-up is on regular basis.
Training:
General Manager (Training) office is functioning at WAPDA House, Lahore and controls
various training centers detailed below: -
WAPDA Staff College, Islamabad.
WAPDA Engineering Academy (Water & Power), Faisalabad
Thermal Generation Training Center, Guddu
Hydel Training Center, Mangla
Technical Services Group, Lahore
Eight Regional Training Centers (RTCs), one at each DISCO
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INTORDUCTION:
Multan Electric Power Company Limited is a public limited company incorporated in
Pakistan. The Company was established to take over all the properties, rights, assets,
obligations and liabilities of Multan Area electricity Board (MAEB) owned by Pakistan
Water and Power Development Authority (WAPDA) and such other assets and liabilities
as agreed.
The Company got the certificate of incorporation of business on 14th May, 1998 and the
certificate of commencement of business on 01 July, 1998. After that the company
started the commercial operations, the principal activity of the company is distribution
and supply of electricity to public within defined geographical boundaries.
The Company also provides the Electricity in rural areas, under the project called
“Village Electrification and European Commission “Through these projects electricity has
been provided in mostly rural areas.
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Mission statement
“ To ensure un-interrupted & stable power supply to all our customers with state-of-art
customer care to the entire satisfaction of customers, issuance of correct bills in a
customer friendly manner and facilitate agriculture and industrial sector catalyzing
economic growth of country.”
Vision Statement
To ensure convenient availability of high quality power in area of responsibility, in order
to alleviate the poverty, improve quality of life and make the Industrial and Agriculture
Sector competitive in the World Market.
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OBJECTIVES OF STUDYING THE ORGANIZATION
As a part of restructuring process of WAPDA, Multan Electric Power Company (MEPCO)
was formed to take over the functions and operation of Multan AEB. It is the one of
Nine (9) Distribution Companies that has been formed out of WAPDA’s distribution
system
MEPCO has been working vigorously to meet the challenges to provide the Electricity in
the whole MEPCO’s region. A measure of this understanding is progressive measure
such as establishment of “VILLAGE ELECTRIFICATION & EUROPEON COMMISSION
PROJECT” to provide electricity in the whole region, the area of MEPCO is increasing day
by day now the total Divisions in MEPCO are 67.It is one of the biggest companies
among WAPDA.
Management Philosophy:
Open door policy for all,
Tackle all problems upfront
Merit, justice, fair play be the hallmark
Transparency in all fields
Accountability of everyone
MEPCO is autonomous body and responsible for salary payments to its employees,
Recruitment of new employees and all of its matters itself
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MEPCO (H.Q)
The MEPCO Head office is situated at Khanewal road Multan, which is central place of
Multan City. The Company’s main offices are also situated in this colony like.
OFFICE OF THE CHIEF EXECUTIVE.
OFFICE OF THE FINANCE DIRECTOR
OFFICE OF THE DEPUTY CHIEF AUDITOR.
OFFICE OF THE DIRECTOR PLANNING AND DEVELOPMENT
OFFICE OF THE MANGER INVENTORY CONTROL.
OFFICE OF THE PROJECT MANGER (CONST)
WAPDA HOSPITAL:
The company provides the free medical facility to its officers and staff. The officers are
subjected to get the medical facility. They cannot get cash medical allowance. But staff
people can get one of the two facilities i-e cash medical allowance or medical facility,
But in emergency they can get facility they feel according to their need.
The Chairman WAPDA has announced that WAPDA Hospital (MEPCO) change WAPDA
(MEPCO) Dispensary. Now the Dispensary is providing the first aid facility to the MEPCO
Employees and refers the serious case to the WAPDA Hospital.
The MEPCO Employees complaint to Chairman, WAPDA starts the MEPCO Hospital
facility in Multan. In view of the different complaints, the Chairman WAPDA said that
the MEPCO employees can enjoy only one facility.
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MEPCO Organization chart
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AREA OF OPERATION:
MEPCO's area of responsibility covers Multan, Khanewal, Sahiwal, Pakpattan,
Bahawalnager, Lodhran, Bahawalpur, R.Y. Khan, Vehari, Muzaffargarh, D.G. Khan,
Layyah, and Rajanpur.
ORGANIZATIONAL STRUCTURE OF MEPCO :
It comprises of the following eight (08) distribution Operation Circles as detailed below:-
Operation Circles
1 Multan Circle 6 Divisions / 33 Sub Divisions
2 D.G Khan Circle 3 Divisions /12 Sub Divisions
3 Vehari Circle 3 Divisions /13 Sub Divisions
4 Bahawalpur Circle 3 Divisions / 17 Sub Divisions
5 Sahiwal Circle 4 Divisions /18 Sub Divisions
6 R.Y. Khan Circle 3 Divisions /15 Sub Divisions
7 Muzaffargarh 3 Divisions /16 Sub Divisions
8 Bahawalnagar Circle 3 Divisions / 13 Sub Divisions
G.S.O Circles 6 Divisions
1. Multan Circle
2. Sahiwal Circle
Project Construction Circle 8 Divisions
Grid Stations:
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1. 132/11KV 74 Nos.
2. 66/11KV 30 Nos.
3. Consumer Grid (132/11KV=04, 220/132/11KV=01) 07 Nos.
TOTAL 111
POWER TRANSFORMERS
1. 132/66KV. 13 Nos.
2. 132/11KV 127 Nos.
3. 66/11KV 44 Nos.
Total 184
Total installed Capacity 2858MVA
LENGTH OF TRANSMISSION LINES
1.132 KV. 2809 KM
2. 66 KV 1479 KM
HT/LT LINES
a) 11KV Feeders 821 Nos.
b) Length of 11KV Lines 53353.309 KM
c) Length of LT Lines 32183.324 KM
d) Transformers (Different Capacity) 89074 Nos.
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NO of Employees in MEPCO UPTO 06/2013
EXISTING STRENGTH
S.# Category Distribution GSO Total
01 Officers Gr-18 & above 152 9 161
02 Assist: Managers 279 38 317
03 Assist: Managers (C.S) 27 0 27
04 LS-I 435 19 454
05 LS-II 398 6 404
06 SSO-I 0 107 107
07 SSO-II 0 212 212
08 Foreman 2 19 21
09 LFM-I (Foreman) 31 0 31
10 LFM-II (Foreman) 36 1 37
11 Commercial Assistant 512 0 512
12 LM-I (Lineman) 1556 65 1621
13 LM-II (Lineman) 1445 90 1535
14 ALM (Asstt: Lineman) 3378 29 3407
15 Meter Reader 1606 0 1606
16 Bill Distributor 570 0 570
17 Chowkidar / NQ 726 34 760
18 Clerk all types 969 23 992
19 Other Staff 2036 1283 3319Grand Total 14158 1935 16093
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Category wise No of Consumers
Up to 31/05/2013
CATEGORIESNo. of Consumers
GOVT. PRIVATE TOTAL
Domestic A-1 13344 3118189 3131533
Domestic Temp. E1 (1) 1 668 669
TOTAL DOMESTIC 13345 3118857 3132202
Commercial A-2 4568 363192 367760
Comm.: Temp E1 (2) 12 713 725
TOTAL COMMERCIAL 4580 363905 368485
Industrial B-1 958 31498 32456
Industrial B-1 (08) 0 30 30
Industrial B-2 130 4826 4956
Industrial B-2 (11) 2 5 7
Industrial B-2 (TOD) 1 9 10
Ind: 11/33 KV B-3 4 28 32
B-3 (TOD) 4 165 169
Ind: 66/132 KV B-4 0 0 0
B-4 (TOD) 1 6 7
Ind: Temp E-2 (1) 1 43 44
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TOTAL INDUSTRIAL 1101 36610 37711
Bulk Supply C-1 (A) 70 22 92
Bulk Supply C-1 (B) 156 99 255
Bulk Supply C-2 (A) 28 5 33
Bulk Supply C-2 (C) 0 1 1
Bulk Temp: E-2 (3) 1 0 1
TOTAL BULK SUPPLY 255 127 382
Agri: SCARP 2998 33350 36348
Agri: D-2 (1) Two Part 153 19945 20098
Agri: D-2 (2) Two Part 0 35 35
TOTAL AGRICULTURE 3151 53330 56481
Public Lighting (G1. G2) 946 161 1107
Res: Colonies (H1, H2) 8 91 99
Rly: Traction (1) 4 0 4
Co- Generation (J) 0 4 4
TOTAL 23390 3573085 3596475
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FINANCIAL OVERVIEW OF MEPCO
FINANCIAL RESULTS DURING 2012-2013
REVENUE (Millions)
Sale of Electricity 41,446.934
Rental & Service Income 163.120
Amortization of Deferred Credit 696.421
Other Income 1,006.864
Total Revenue 43,313.389
EXPENSES (Millions)
Cost of Electricity 40,962.160
Operating Expenses (incl. depreciation) 4,945.979
Financial Charges 703.180
Total Expenses plus Tax 46,676.312
Loss for the year (6309.569)
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FINANCIAL POSITION AS ON 30.06.2013
ASSETS (Million)
Tangible Fixed Assets 30,557.350
Long Term Advances / deposits 17.340
Current Assts 15,549.660
Total Assets 46,124.350
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ACCOUNTING UNITS:
MEPCO has 74 accounting units which are as follows,
28 Deputy manager operations/ Exien office
28 customer services offices (Revenue office)
Manager MIS
Manager P.D Construction
Manager (Material & Management)
Manager T & S (Technical services)
S.S & T offices (these are 4 offices a-Muzaffar garh b-Multan c-D.G Khan d-Sahiwal)
Deputy Manager P & I ( Protection & Instruments )
Deputy Manager Civil
Regional Stores (these are 4 offices a-Multan b-D.G Khan c-Sahiwal d-Bahawalpur)
P.D GSC
Finance Director (F.D)
Manager STG ( Station Transmission Grid station)
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FINANCE DEPARTMENT
Finance is like the running blood in the organization. So Finance management is very important
in any firm. In MEPCO the Finance department is doing finance management well. Because of
its highly qualified and trained officers and hard working team this department’s performance
is out of mark. Finance Department has the following structure,
1. Mr. Mushtaq Hussian Bukhari (FD)
2. MR. Mian Ansaar Mehmood (MCA)
3. Mr. Ch.Ashraf (DMCA)
4. Mr. Khawaja Habib-ur-Rahman (DMCA)
5. Mr. Jahangir Bhutta (Acting MF.CPC)
6. Mr. Irfan-ul-llah (DMCA STG)
MAIN OFFICES OF FINANCE DEPARTMENT
BANKING SECTION: Mr.Rao Tasa (AMCA)
BUDGETING SECTION: Mr. Jahangir Bhutta (MF.CPC)
POST & PRE AUDIT SECTION: Mr.Aftab Fazal (AMCA)
RECEIVEABLE & PAYABLE SECTION: (AMCA)
COMPILATION SECTION: Mr. Najeeb Afzal (AMCA)
ESTABLISHMENT SECTION: Mr. Liaqat Ali (AMCA)
PENSION SECTION: Mr. Iqbal Munawar (AMCA)
ASSETS SECTION: Mr. (AMCA)
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Banking section
This section deal with the different banks those are authorized banks of the company under the
area covered by the company. This section monitor the collections of electricity bills, security
deposits, RCO fees, and other receipt as well as remittance of the such collection in to main
branch of the company at Multan.
If any bank fails to remit the company’s fund in time, ask for such omission and charged
interest for late remitted of company’s fund. This section also deals with the reconciliation and
related matters with banks.
Revenue collection from the banks and distribution of cash to accounting units is done through
banking section. Banking has four main accounts in different banks. These are
Main Revenue account
Retention account
Capital cost account
Security Deposit accounts
MAIN REVENUE ACCOUNT:
Main revenue account deals with the receipts of Revenues from all the MEPCO offices. They are
directed to deposit collections in MRA in the banks associated with MEPCO. These are ABL,
BOP, NBP, HBL, UBL, MCB, Askari, PPCBL, GPO, 1st Women bank
CAPITAL COST ACCOUNT:
The cost of meter that is erected for customer is treated as capital cost and the amount that is
received from customer after payment of Demand notice is transferred to capital cost account.
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RETENTION ACCOUNT:
This account has two main categories,
1. Deposit work account
2. General Account
Funds that are given to MNA’s are transferred to DEPOSIT WORK account. The only bank deal
with is ABL. These funds are used for the new electrification in rural areas
Any payment to Supplier for purchase of any kind of material is done through GENERAL
account. This payment bears the procedure of L.C. Payment of salaries to employees also done
through this Account.
SECURITY DEPOSIT ACCOUNT:
When any customer pays the demand notice for the connection of electricity it consists of two
costs
1. Capital Cost
2. Security Amount
The capital cost amount goes to Capital cost account and the remaining in the security account.
BUDGET SECTION:
Budget means the expected Revenues and Expenses for specific period. Budget making is very
effective tool for the management to run its operations smoothly.
This section deals with preparation of the budget of each office / division of the company. After
approval of the budget the funds are issued to each office according to their budget
requirement. This section also monitors the variance of the budget.
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This section is so much important because of its working scope. It deals with CAPITAL BUDGET
which holds the following activities,
Development Of Power
Energy Lost Reduction
STG Developments
This section makes the Unit rates and send to the National Electricity power regulatory
Authority (NEPRA) for approval. Loans are also arranged by this section.
POST & PRE AUDIT SECTION:
The company has to setup of the internal audit of the company’s revenue / financial activities.
This department is working, under the administrative control of Deputy Chief Auditor, MEPCO
Multan. The internal audit division conduct the revenue audit of the company’s revenue
accounts continuously throughout the year. The internal audit division is also responsible for
the audit of the company. It is divided into the different basic sections which deal with their
relevant department billings & payments. These sections are
Transport Audit
Civil division audit
System Transmission Grid
INTERNAL AUDIT DIVISION:
The company has to setup of the internal audit of the company’s revenue / financial activities.
This department is working, under the administrative control of Deputy Chief Auditor, MEPCO
Multan. The internal audit division conduct the revenue audit of the company’s revenue
accounts continuously throughout the year. The internal audit division is also responsible for
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the audit of the company. The audit of the accounts of the company’s formation is conduct
through two types of audit parties.
LOCAL AUDIT PARTIES:
The local audit parties audit the electricity revenue accounts maintained in revenue office
concerned on bi-annual basis throughout the year. There are 21 local audit parties to conduct
the revenue audit of the revenue offices headed by the assistant audit officer and 4 to 6 audit
assistants, to conduct the audit. These parties are rotated in all the revenue offices of the
company. These office parties, during the course of audit, pointed out the cases of less billing,
omission and commission through audit notes. And after discussion with revenue office and
Dy.Manager (OP) or in some cases with Manager (OP), the audit notes are accepted and
debited to respective consumer for recovery.
AUDIT PARTIES:
These parties conduct the financial audit of the company’s formation on yearly basis in addition
to this, these parties also conduct the capital receipt audit. These parties audit the accounts
maintained by the Sub-Division/Division/Circle level and also conduct the audit of the MANGER
Finance and other MANGER etc. of the company. This party also conducts the audit of the Chief
Executive office to check its accounts.
In addition to above regular audits the internal audit division also carry out the special audit of
the accounts of certain formation under the specific order of the Chief Executive.
The result of such audit is submitted to the company for taking further necessary / remedial
action. The company itself lays down the scope of the special audit. It is also the function of
internal audit division to verify the financial rules and order that these are accordingly followed.
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STOCK VERIFICATION:
The company has maintained its schedule for verification of its assets and stock on annual
bases. The Deputy Chief Auditor deputes its work verifiers for this purpose. The stock verifiers
visit the specific formation assigned to them for stock verification. They physically check the
assets and reconcile with stock register and point out discrepancy regarding surplus of
shortage.
EXTERNAL AUDIT:
According to company’s ordinance 1984, a Chartered Accountant must audit the financial
statements of a Public Limited Company. For this purpose Board of Director has appointed the
External Audit Party. Board of Director has appointed M/S RIAZ AHMED & COMPANY Chartered
Accountants; to conduct the statutory or external audit of the company.
COMPILATION SECTION:
This section deals with the compilation of the accounts of the company. The operation division
and other division of the company submit their monthly accounts to this office with relevant
records. This section maintains different books of accounts. The accountant received from
different division is posted in ledger accounts according to their heads for ultimate preparation
of final accounts.
At the end of each month they prepare consolidated trial balance and at the end of financial
year this diction prepare the profit and loss accounts, balance sheet, cash flow statement and
detail of accounts of different heads.
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ESTABLISHMENT:
Establishment sections deals with the staff payments like Travelling allowance, Salary, Medical
allowance, WAPDA welfare fund, Group life insurance and Marriage funds etc. All these funds
are received by employees after approval of this section.
TRAVELLING ALLOWNCE:
When an employee goes to another city on behalf of MEPCO, it gives the travelling allowance to
him. Travelling allowance is given in two ways
Special day allowance
Ordinary day allowance
Special day allowance is given when employee goes to the big city which is mentioned by
MEPCO like Lahore, Faisalabad. Islamabad, Karachi, Peshawar etc. But the ordinary allowance is
given for small cities. Special daily allowance rate is higher than Ordinary daily allowance.
MEDICAL ALOWANCE:
Two options are available to employees in respect of Medical allowance. These are Cash
medical allowance and Medical Facility. Cash Medical allowance is given in monthly salary (i-e
425 Rs.). And Medical facility in shape of medical treatment from approved hospitals. From
scale 1-16 one from each facility can be taken but from scale 17-22 only facility available is
Medical Facility.
GROUP LIFE INSURANCE:
It is the part of Government policy to deduct the Group life Insurance from salary of employees.
Deduction under this head is accumulated in GLI Account.
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ASSET SECTION:
This section is established to deal with all the assets of the company. Company charges
depreciation on its assets by using the following rates.
Buildings @ 2 %
Office Equipment @ 10 %
Distribution Equipment @ 3.5 %
Other plant and equipment @ 10 %
Vehicles @ 10 %
ACCOUNTING POLICY FOR DEPERECIATION:
Depreciation is charged by using straight-line method so as to depreciate the depreciable
amount of an asset over its useful life. Depreciation is no charged on the assets disposed during
the year but full year depreciation is charged on any asset purchase during the year.
PENSION:
Pension is the benefit for the employee after retirement and is given by the employer at
monthly basis. There are two conditions of service for which the employee is eligible for
pension. First he has completed the service of 25 years and second is he reaches the age of 60
which is the maximum limit for service.
Following are the types of Pension,
Super annuation Pension
Retiring Pension
Compensation Pension
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Family Pension
Invalid Pension
Graduity
1 Superannuation Pension
It is the pension offered by the government at the age of 60 years. At that age the person is
must be retired.
2 Family Pension
It is offered by the government in the case when the employee is dead due to the natural
cause during service or after retirement.
3 Invalidation Pension
It is the pension offered by the government when the employee is not remains medical fit due
to the some medical reasons; example is eye sight is week or any other cause.
4 Retiring Pension.
It is the pension taken by the employee when he is completed the service of 25 years
which is important to qualify for taking pension.
At the filing the case of pension, the documents required are
Pension Form
Computerized Id card
Photos
Service Book
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The service book is the book which is submitted by the employee at the time of appointment.
In that book his whole service record has been kept. His pay scale increment every year, his
promotion, his leaves all the records are kept in that book.
Retirement Order
The retirement order has been submitted by the employee at the age of 60years by the
approval of chief.
Last Pay Certificate (LPC)
The LPC is the certificate issued by the finance director in which his last basic pay is mentioned
which is used in the further making of pension.
No Demand Certificate
It is the certificate in which employee give the surety that he has not ever take the loans or any
pension funds ever before
No Audit Para Certificate
In it, it has been verified that any audit team has write any comments on his service book
related to his service.
No Enquiry Certificate
In it, it has been verified that there is no enquiry has been sitting against him for that reason he
has been suspended from his job.
FIA Certificate
In it, it is verified that in the whole service he is never caught red handed by the anticorruption
or FIA for doing the misuse of his authorities.
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Entire Service Certificate (Consolidate Certificate)
In it, there is a calculation of the whole service period and verified by the Finance director. In
that there is also mentioned how much his approved vocation has been left. The total earned
leaves are 48 days these are adding every year in case any leave is left. And casual leaves are 25
days these are renew every year
EOL Certificate (Extra Ordinary Leave Certificate)
In it, it is verified that from his service book he has not taken any extra ordinary leave for any
purpose so that that period has been deducted from his service period.
List of Family Members
In it, list of detail family members including the wife, children married/ unmarried, their ages.
The above mentioned documents are necessary for an employee to submit them when he is
going to take his pension. In case of missing or incomplete or any recovery taken from
employee no pension has been given.
Pension Rules:
In it following permission has been given
In case of death of employee, his widow/ orphan has take the pension by fulfilling
the following conditions
Son is less than 21 years of age.
Daughter is unmarried. She has submitted his unmarried certificate
Widow is also submitted the non- marriage certificate after the death of his husband
and also the non separation certificate
in case of the employees who has not married but died their parents can take the
pension up to the 10years
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Service above the 6 months consider next year and below the period should be
ignoring in calculation of service years.
After the service of 25 years he is eligible to take his pension
In case of death, service is less than 5 years then there is no pension
If it is in between the 6-10 years he will get the pension of 1.5 years salary.
Calculation of Pension:
Let the basic pay of the employee is Rs.10000/- at the retirement time. Then his pension has
been calculated by the following
Gross Pension = Basic pay*70/100* service/30
= 10000* 70/100 * 25/ 30
= Rs.5833/-
This Pension is divided into two forms
Accumulations
= GP * 35% * 12 * age factor
= 5833 *35% *12 * 12.3791
= 303097.2/-
Monthly Pension
= 5833 * 65% = 3791
Increase 1-07-2005 = 3791+ 3791* 10% = 4170
Increase 1-07-2007 = 4170 + 4170*15% = 4795
So the monthly pension is Rs.4795/-
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FUNCTION OF THE FINANCE DEPARTMENT
MEPCO ACCOUNTING SYSTEM:
ACCOUNTING:
Accounting is simply “the means” by which we measure and describe the result of
economic activities. Actually, nearly everyone practices “accounting” in form or another
on almost daily basis. Whether you are managing a business, making investment,
preparing your income tax returns or just paying utility bill. you are working with
accounting concepts.
Accounting is also called the language of business because it is widely used in describing
all types of business activities. Every investor, manager and business decision makers
need a clear understanding of accounting terms and concept. Modern system of
accounting is based on the principle of double entry book keeping system.
DOUBLE ENTRY BOOK KEEPING SYSTEM
Double entry system based on the principle of duality which means that all events of
economic importance have too aspects (i-e “effort and rewards”, “scarifies and
benefit” , “resource and uses” that off set or balance each other in the double entry
system each transaction must be recorded twice in such a way that total amount of
debit and credit must equalizes each other .The T accounts is a helpful place to begin
the study of double entry system
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THE USE OF COMPUTER
IN ACCOUNTING SYSTEM:
The sequence of accounting procedures used to record, classify and summarize the accounting
information is termed as “Accounting Cycle”. The “Accounting Cycle” begins with the initial
recording of business transactions and concludes with the preparation of formal financial
statements, summarizing the effects of these
transactions. The terms “Cycle” indicates that these procedures must be repeated continuously
to prepare new up-to-date financial statements at reasonable intervals.
The “Information Technology Cell” of MEPCO Computer Centre has developed following two
“software packages” for computerization of accounting procedure prevailing in MEPCO.
Software for Elementary Accounting Units.
Software for Headquarter
CASH BOOK:
Two types of “Cash Book” are being used by the MEPCO.
Imprest Cash Book
Miscellaneous Receipt Cash Book
A separate bank is used for each type of “Cash Book”. The cash book is required to be selected
for each bank account.
VOUCHERS:
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The documents in supports of each transaction are called a voucher. Each activity/ transaction
is to be recorded on the voucher. There are four types of vouchers.
Cash Vouchers:
All the vouchers pertaining to cash are called cash vouchers. The vouchers regarding cash
receipts are called cash receipts vouchers while the vouchers regarding the cash payments are
called cash payment vouchers
Bank Vouchers:
All the transactions relating to banks are recorded on the vouchers are called as bank vouchers.
The vouchers regarding the receipts through banks are called bank receipt vouchers & the
vouchers regarding the payments through banks are called bank payment Vouchers.
Journal Vouchers:
All other transaction are recorded on “journal Vouchers” e.g. regarding rectification of errors,
miscellaneous classification, depreciation of fixed assets provision for bad debts
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PREPARATION OF VOUCHERS:
The vouchers are to be prepared by the accounting staff of an accounting unit. The information
is recoded in the following ways.
Three digits transaction type/ code is required to be entered on the voucher at the first stage.
The First digit indicates whether it is a bank entry, cash entry or direct entry. “1” is used for
bank, “2” for cash and “3” for direct.
The second digit represents the type of voucher and is coded as under.
“1” or “2” for Receipt Voucher.
“3” or “4” for Payment Voucher.
“5” or “6” for Journal Voucher.
“7” for I.O.T and Cr. Note
“8” for S.S Cheques.
The third digit indicates the transaction type of the voucher i-e the detail of the accounts to be
affected.
Voucher number is to be left blank and will be automatically generated by the computer. It will
be the next number falling in the serial.
Enter the date on which the voucher is being prepared. In case of Payment Voucher the same
date will be considered as date of issue of Cheque.
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Six digits account head code is required to be entered. First two digits represent the main
account head, next two digits represent the sub account head and remaining two digits
represent the detailed account head.
Enter the amount to be credited in case of receipt voucher and debited in case of payment
voucher because debit in receipt voucher and credit in payment voucher is understood. The
amount may either be written in rounded form or it may be written with two decimals points.
As per accounting procedure two accounts are affected at the same time as a result of each
transaction. Enter the title of account to which credit is raised in case of receipt voucher or
debit is raised in case of payment voucher.
In the next column the amount of voucher is narrated in words.
Enter the Cheque/D.D. /P.O. /T.T. number along with date in case of bank vouchers.
Name of bank as well as account number of concerned bank is entered in the respective
column.
In case of Journal Vouchers some accounts are debited by crediting some other accounts for
each transaction. Account head code as well as amount debited/ credited in respect of each
account must be written in the respective columns. Total of amounts written in the debit
column must be equal to the amount written in the credit column.
As the process of preparation of voucher is completed as per above procedure, the vouchers
are presented to the P.C. Operator for entry purpose
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INTER OFFICE TRANSACTION(IOT):
Debit & credit advises received from other as well as issued to other offices as well as issued to
other is called as inter office transaction. Inter office transaction comprises of following major
components
Debit advice received & issued
Credit advice received & issued
S.S cheques received & issued
SUPPLIERS INFORMATION:
The information regarding all expected suppliers who are dealing with that proper Accounting
Unit such as Name, Address,
Phone Numbers and Fax Numbers are also entered at the time of implementation and will be
used whenever required.
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Future Projects
PROJECTS ANNOUNCED BY THE PRESIDENT OF PAKISTAN
•Diamer Basha Dam
•Kurram Tangi Dam Project
•Munda Dam Project
•Akhori Dam Project
FEASIBILITY STUDY IN HAND (HYDROPOWER PROJECT)
•Golen Gol
•Dasu
•Bunji
•Keyal Khwar
•Lawi
•Palas Valley (Chor Nullah)
•Spat Gah
•Basho
•Phandar
•Jabban
•Thakot
•Patan
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•Tarbela
•LBOD STAGE-1 BADIN AREA DRAINAGE SYSTEM
ONGOING PROJECTS
UNDER CONSTRUCTION DAMS
•Gomal Zam Dam Project
•Mirani Dam Project
•Mangla Dam Raising Project
•Sabakzai Dam Project
•Satpara Dam Project
UNDER CONSTRUCTION CANALS
•Rainee Canal Project
•Kachhi Canal Project
•Greater Thal Canal Project
UNDER CONSTRUCTION DRAINAGE PROJECTS
•RBOD-I
•RBOD-III
UNDER CONSTRUCTION HYDROPOWER PROJECTS
•Allai Khwar Hydropower Project
•Khan Khwar Hydropower Project
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It is the moral and professional duty of the directors, managers and executives toovercome the
weakness and convert them into strengths, and get maximum benefits andopportunity from
the prevailing resources.
Strength
•The MEPCO top management is the combination of both experience and youngenergetic
professionals which are proving to be the real strength of MEPCO.
•MEPCO website provides every information about MEPCO to the customers andinvestors.
•MEPCO has equipped with the latest technology.
•MEPCO has good relation with different departments.
•The MEPCO employees are locally so, the turnover rate is low.
•The MEPCO has efficient internal audit department, which keep check and balance.
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•The MEPCO has experienced of strategic apex and managerial skilled staff.
•Full support from Federal Government
Weaknesses
•The administrative cost of the company is very high due to which the profitabilityof the
company decreases.
•There is still improvement of technology in the MEPCO like in computers.
•There customer service are not up to mark they have to improve the customer services to
satisfy the customers
•There divisions are not well furnished they have the need to improve them.
•Telecom and Media revolution
•Dependency on suppliers of power generation equipment.
Opportunities
•The MEPCO is situated in the region where the customers are large in quantityand other
necessary related product is easily available in the market.
•There is no competitor in the local market, there is a big opportunity to get moreshare.
•Buyers of MEPCO services are easily available in the local market.
•The extension plan of divisions by the MEPCO is very good to capture themarket.
•The MEPCO has maintained better relationship in the market which helps theMEPCO to
increase the customers.
•The strategies of MEPCO are very strong which help them to get advantage sover the
competitors.
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•Research and development in power generation equipment
•Natural resources to increase water resources and cheaper power
•There are rapid changes in technology of power generation and to coup with it ministry will
have to be planning for the future plans keeping in mind the changes
•New power projects have the bargaining power for higher prices keeping in view the high
demand and supply gap in power sector.
Threats
•One major threat to the MEPCO is increasing number of customers day by day.
•Due to fluctuation occur in the supply is permanent threat to the MEPCO.
•There is always a threat the government may impose some duties on the MEPCO.
•Another threat to the MEPCO is change in day by day technology.
•Withdrawal of support from suppliers.
•Curtailment of budget.
•Obsolescence of strategic equipment
•There is not a long list of suppliers in power sector and the suppliers enjoy monopoly to some
extent and they can charge higher and delay supplies as there is long waiting lists for
equipment supplies
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Limitations
•No proper arrangement for electricity they have dames and generators but they are not work
according to the requirement of the MEPCO.
•Sometime MEPCO employee create tens environment in the MEPCO due to there non
cooperative behavior.
•They have provided me knowledge about MEPCO but not according to therequirement of
internship due to much work load on the employees
Observation
•I have observers that there is need of improvement in the MEPCO especially the building of
the MEPCO is not according to the requirement of MEPCO.
•Sometime the employee don’t cooperate with customer they must have needed to cooperate
with customers to create good relationship with them.
•I have also observe that there is no proper dress court of employee in the divisions so, they
have need to follow proper dress court
•I have observed that there is need of safety department or some safety precautionfor
employees of MEPCO
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Suggestions
The following are some suggestions about the MEPCO .
•Management should try create more understanding between different departments to
increase their productivity.
•The top management should give the authority and flexibility to every manager to make
decisions according to the situation at any time and in the absence of the top manager.
•A proper training should be given to the employees and he workers to enhance their skills to
increase their productivity and utility of the MEPCO.
•All the duties and responsibilities of the employees and thee workers should be clearly
defined.
•The computer technology should also be used in decision making as well as instoring and
feeding the data.
•There should be decentralization in decision making.
•The management should recruit right person for right job having proper knowledge related to
the job.
•The management should here multi skilled workers to get economy of scales.
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Conclusion
I got a lot of experience in MEPCO. During my internship I come to know that the different units
are working under one umbrella. I have noticed that they are getting the benefits by minimizing
different costs which earlier they were paying due to lack of technology of computer. The
MEPCO has latest technology for its services and they are serving the local market very well.
MEPCO has open door policy for all tackle all problems upfront Merit, justice, fair play be the
hallmark Transparency in all fields Accountability of everyone.
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REFRENCES:
Personal Observation
www.mepco.com.pk
Finance department section Accounts officers, Admin etc
www.google/images.com
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Annexure
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